§ 4-31. Reducing the customer's liability for misuse of a payment instrument

This section is a safety valve for the customer. Under § 4-30, the customer can be required to pay an excess (egenandel) or bear greater liability when a payment instrument is misused. Reduction means that the liability is lowered when the result would otherwise be unreasonable. The first paragraph lists three factors in the assessment: what kind of security information belonged to the instrument, the circumstances under which the instrument went astray, and whether the bank itself was careless or in some other way contributed to the loss arising.

The second paragraph allows reduction in a different situation. If a supplier of goods or services received the payment and understood or ought to have understood that the use of the instrument was unlawful, the customer's liability can also be reduced. Here the focus is on the recipient of the money, not on the customer or the bank.

The third paragraph sets an absolute limit. If the customer committed fraud, or deliberately failed to follow the duties in § 4-23 first paragraph or § 4-24 first paragraph, the liability cannot be reduced. So this does not apply to someone who has merely been careless. Such carelessness, even gross, can be taken into account in the reduction, whereas intent and fraud close the door.

Example: A customer has been careless with their PIN and is therefore liable for the loss under § 4-30. At the same time, the bank itself had a weakness that helped the misuse succeed. The liability can then be reduced under the first paragraph, because the bank's contribution is a factor in the assessment. If, on the other hand, the customer had intentionally breached their duties, reduction would have been ruled out under the third paragraph.

The rules in § 4-30 set the limits for what the customer can be held liable for. The excess is limited to a maximum of NOK 450, and in cases of gross negligence (grov uaktsomhet) with an electronic payment instrument, liability is limited to NOK 12,000. Reduction comes in addition to these limits. Under § 4-32, the bank must refund the amount quickly if the customer disputes liability. Between banks, the loss can be claimed under § 4-33. Sections 4-28 and 4-29 concern liability for the execution of payments, not misuse.